A dividend king is a stock that has achieved at least 50 consecutive years of dividend growth. On the Canadian market, only one stock has reached this impressive milestone. Meanwhile, the United States market boasts more than a handful of equities that wear the crown. Today, I want to look at a dividend king that offers nice value and income at the time of this writing.
3M (NYSE:MMM) is a Minnesota-based company that provides diversified technology services in the United States and around the world. Shares of this top U.S. stock have dropped 16% in 2023 as of close on April 4. The stock is down 31% year over year.
Investors can expect to see this company’s first batch of fiscal 2023 earnings later this month. In the fourth quarter of fiscal 2022, 3M delivered adjusted earnings per share (EPS) of $2.28 – up from $2.45 in the previous year. Meanwhile, sales fell 6% year-over-year to $8.1 billion. It delivered marginal organic sales growth in the fourth quarter of fiscal 2022.
For the full year, sales dipped 3% year-over-year to $34.2 billion. Meanwhile, it delivered organic sales growth of 1.2% year on year. Adjusted EPS declined 6% year-over-year to $10.10.
3M has delivered dividend-growth for 64 consecutive years. It currently offers a quarterly dividend of $1.50 per share. That represents a very strong 5.8% yield. Better yet, this stock possesses a favourable price-to-earnings ratio of 10. Now is a great time to pounce on this undervalued dividend king.
